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91_SB0750
LRB9103108WHdv
1 AN ACT concerning interest, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Code of Civil Procedure is amended by
5 changing Section 2-1303 as follows:
6 (735 ILCS 5/2-1303) (from Ch. 110, par. 2-1303)
7 Sec. 2-1303. Prejudgment and postjudgment interest on
8 judgment.
9 (a) Prejudgment interest shall be recovered as follows:
10 (1) On all moneys after they become due on any
11 bond, bill, promissory note, or other instrument in
12 writing.
13 (2) On money lent or advanced for the use of
14 another.
15 (3) On money due on the settlement of account from
16 the day of liquidating accounts between the parties and
17 ascertaining the balance.
18 (4) On money received to the use of another and
19 retained without the owner's knowledge.
20 (5) On money withheld by an unreasonable and
21 vexatious delay of payment.
22 (6) On a sum awarded for breach of an oral or
23 written agreement.
24 (7) Because of an intentional act depriving or
25 otherwise interfering with title to, or enjoyment of,
26 real or personal property, including money.
27 (8) As otherwise provided by law or in equity.
28 (b) Prejudgment interest shall be computed from the date
29 the cause of action first arose, except that interest on
30 damages incurred after that date shall be computed from the
31 date incurred. If the damages were incurred at various
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1 times, interest shall be computed on each item from the date
2 it was incurred or on all of the damages from a single
3 reasonable intermediate date.
4 (c) Except as otherwise agreed, the rate of prejudgment
5 interest for each calendar year or portion thereof shall be
6 1% per annum above the rate equal to the coupon issue yield
7 equivalent (as determined by the United States Secretary of
8 the Treasury) of the average accepted auction price for the
9 last auction of 52-week United States Treasury bills
10 conducted during the preceding calendar year. The rate of
11 prejudgment interest shall be computed each calendar year in
12 accordance with this subsection and shall be applied daily to
13 the date of judgment.
14 (d) Judgments recovered in any court shall draw interest
15 at the rate of 3% per annum above the rate for prejudgment
16 interest, calculated from the date of the judgment until
17 satisfied except when the judgment debtor is a unit of local
18 government as defined in Section 1 of Article VII of the
19 Constitution, a school district, a community college
20 district, or any other governmental entity, in which case the
21 rate shall be equal to the rate for prejudgment interest.
22 When judgment is entered upon any award, report, or verdict,
23 interest shall be computed at the rate specified in this
24 subsection (d), determined as of the day of judgment, from
25 the time when the award, report, or verdict is rendered to
26 the time judgment is entered thereon, and shall be included
27 in the judgment. Interest shall be computed and charged only
28 on the unsatisfied portion of the judgment as it exists from
29 time to time. The judgment debtor may, by tender of payment
30 of judgment, costs, and interest accrued to the date of
31 tender, stop the further accrual of interest on the judgment
32 notwithstanding the prosecution of an appeal or other steps
33 to reverse, vacate, or modify the judgment.
34 (e) The courts shall take judicial notice of the rates
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1 provided in this Section.
2 (f) Subsections (a) through (e) apply to causes if
3 action accruing on or after the effective date of this
4 amendatory Act of the 91st General Assembly.
5 (g) This subsection (g) applies to causes of action
6 accruing before the effective date of this amendatory Act of
7 the 91st General Assembly. Judgments recovered in any court
8 shall draw interest at the rate of 9% per annum from the date
9 of the judgment until satisfied or 6% per annum when the
10 judgment debtor is a unit of local government, as defined in
11 Section 1 of Article VII of the Constitution, a school
12 district, a community college district, or any other
13 governmental entity. When judgment is entered upon any
14 award, report or verdict, interest shall be computed at the
15 above rate, from the time when made or rendered to the time
16 of entering judgment upon the same, and included in the
17 judgment. Interest shall be computed and charged only on the
18 unsatisfied portion of the judgment as it exists from time to
19 time. The judgment debtor may by tender of payment of
20 judgment, costs and interest accrued to the date of tender,
21 stop the further accrual of interest on such judgment
22 notwithstanding the prosecution of an appeal, or other steps
23 to reverse, vacate or modify the judgment.
24 (Source: P.A. 85-907.)
25 Section 10. The Interest Act is amended by changing
26 Section 2 as follows:
27 (815 ILCS 205/2) (from Ch. 17, par. 6402)
28 Sec. 2. This Section does not apply to causes of action
29 accruing on or after the effective date of this amendatory
30 Act of the 91st General Assembly. Creditors shall be allowed
31 to receive at the rate of five (5) per centum per annum for
32 all moneys after they become due on any bond, bill,
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1 promissory note, or other instrument of writing; on money
2 lent or advanced for the use of another; on money due on the
3 settlement of account from the day of liquidating accounts
4 between the parties and ascertaining the balance; on money
5 received to the use of another and retained without the
6 owner's knowledge; and on money withheld by an unreasonable
7 and vexatious delay of payment. In the absence of an
8 agreement between the creditor and debtor governing interest
9 charges, upon 30 days' written notice to the debtor, an
10 assignee or agent of the creditor may charge and collect
11 interest as provided in this Section on behalf of a creditor.
12 (Source: P.A. 90-417, eff. 1-1-98.)
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.